Posts Tagged ‘Asian shares’

Asian stock markets on a high

Friday, October 9th, 2009

On Wednesday, most of the Asian stock markets were high and it was supported by Wall Street’s rally. Resource stocks, energy, and gold were shining after the prices of the gold went up a record high as the prices of the oil and base metals increased on Tuesday. The investors were expectant about American third quarter income, which started on Wednesday with the reporting of Alcoa (aluminum giant). Bell Potter who is a Senior Client Adviser at Stuart Smith, Sydney said that there are only little negatives witnessed, with more hopefulness about profit margin growth and not essentially top line income impelling the market.

Nikkei 225 of Japan was up by 0.8 percent; Kospi Composite of South Korea was up by 0.2 percent, Hang Seng of Hong Kong was at 1.6 percent, and S&P/ASX 200 of Australia was by 1.5 percent. Dow Jones Industrial Average prospects were up by ten points in the screen trade after the closing of DJIA at 1.3 percent.

After the prices for the spot gold increased and touched a record high on Tuesday at $1043.54 per troy ounce, the gold miners were leading the way in Australia. The yellow metal was lately at $1038.29 per troy ounce which came down by $3.49 from the close of New York. Lihir Gold increased by 5.1 percent and Newcrest Mining rushed 6.3 percent. On Tuesday, the profits earned by base metals price assisted BHP Billiton up 2.6 percent and Rio Tinto increased by 4.2 percent as the increase in the crude oil prospects helped Wood side Petroleum by 0.3 percent and Santos by 1.0 percent.

The lead November Nymex crude oil prospects agreement was lately increased 42 cents at $71.29 per barrel, settling at 46 cents more in New York on Tuesday. Energy stocks and miners too surpassed in the Asian markets. Mitsubishi Materials was up 6.5 percent, Sumitomo Metal Mining in Japan was up 5.2 percent, and in Korea Korea Zinc rushed 6.8 percent and Posco increased 1.6 percent.

In Hong Kong Chalco were up 2.6 percent, Shenhua 2.1 percent and Cnooc up by 1.2 percent. Ben Kwong of KGI was of the view that better market feeling will probably lend some assistance for the local market, but possible policy dangers in China further on restrain any more increase in the coming term. The shares of Japan were also joining, though a market analyst with Daiwa Securities SMBC said that yen being stronger than American dollar is a big worry. It will not happen like that the investors will be sell exporters aggressively, but they will be quite careful regarding investing with them.

Tosoh who is a main material maker from Japan is amongst the big gainers was up 5.8 percent and peer Showa Denko increased 8.7 percent when Nikkei reported that both of them were starting to manufacture safe, inexpensive materials for lithium ion batteries for increasing the green vehicles demand. NZX-50 of New Zealand came down 0.4 percent, main index of Malaysia was up 0.3 percent, and Straits Time Index of Singapore was up 1.1 percent. Main index of Indonesia was up 0.3 percent, main index of Taiwan increased 0.6 percent, and Philippines shares increased 2.3 percent. The markets of China were closed because of their National Day holidays.

The land-assets, construction stocks, and banks were having an increase from the weak American dollar with Cathay Financial increase 4.3 percent and Fubon Financial yup 1.7 percent. Randy Chang of KGI Securities said that the profits are because of the liquidity momentum while the Asian currencies profits against American dollar. The market of New Zealand undid their previous profits as the strong Telecom Corp. came down 2.2 percent and Fletcher Building lost 2.2 percent. The broker of David Price said that the fault of these two stocks were because of the index alterations from foreign parties.

The American dollar was up against the yen in the foreign exchange market after the Tuesday’s heavy losses and was trading at Y88.87 in late New York business. The euro was recorded at $1.4697 from $1.4723 and from Y130.65 at Y130.66. On Tuesday the market of base metals was getting the flow back after the impressive profits. Mark Pervan who is a Senior Commodity Strategist at ANZ said that the base metals are following the dollar. Copper is still maintaining is importance but aluminum is looking shaky.

Uncertainty still prevails whether the profits will continue even after the rise in Asian shares

Monday, April 13th, 2009

With the preceding week’s profits on Monday the Asian shares witnessed a high once more along with the rise in the financial stocks through the turn down of the service stocks in Australia. The Nikkei of Japan rose to 2.3 percent, NZX-50 of New Zealand had an addition of 0.5 percent, and Kospi of South Korea gained a high by 1.1 percent. But some of the market analysts were not confident about the continual of the market mood due to the economic slump in America.

One of the experts at RBC Capital Markets was the of the view that with some good days in American market previous week the risk seekers will be able to have their first victory after so many months. Last week The Dow Jones Industrial Average increased to 9.01 percent. No main feedback is observed to the remarks made by Mr. Ben who is the Chairman of Federal Reserve. He was the first Federal chairman to be televised on sixty minutes in over two decades. He said that he believes that the economy will soon get normal and this will only happen after the stabilizing of the various banks and financial markets.

Nymex crude oil decreased in the field of electronics after OPEC chose to support enhanced compliance along with the current decrease amid doubts that with the high prices it could endanger the chances of bouncing back in the world economy. Economic stocks witnessed an increase with UFJ FG of Mitsubishi by 4.5 percent, Shinsei Bank increased by twelve percent, and Sumitomo Mitsui FG increased by 5.3 percent. Macquarie included 3.6 percent and Australia’s Commonwealth Bank increased by 3.5 percent.

According to a person having knowledge about the situation the government of Australia has extended the review of China’s Aluminum Corp or the planned US $19.5 billion investment in Rio of Chinalco. Also with an institutional shareholder with Australian Foundation Investment Co was of the view that Chinalco would give major authority and they don’t even have to pay the premium.

Pioneer shares increased by ten percent in Japan while they were not involved in talks with Mitsubishi Electric. According to Yomiuri Shimbun weekend report, the two had started discussion on alliance in car navigation and other fields of auto parts. In Korea the auto stocks were superior following the posting of the good sales in Europe as compared to their competitors. Kia Motors witnessed a high of 4.1 percent and Hyundai Motor increased by 2.1 percent.

In New Zealand Sentiment was assisted by Nuplex saying that for the time being their banks had given up agreements for its senior debt cover ratio and they are also planning a NZ$110 million capita increase.

Their shares got suspended from trade but in the midst of the active stocks, Mainfreight collected 4.0 percent and Pike River Coal increased by ten percent. The market of currency was uneven where the euro dropped early as compared to the yen of Japan and American dollar. After falling to $1.2832 as compared to Friday’s in New York $1.2919 and Y126.38 in Asia the euro was lately recorded at $1.2872. The American dollar was approximately at Y98.11 at first falling to Y97.56. A group of twenty central bankers and finance ministers discussed all new steps in facing the economic slump.